Last-minute disclosures take black money mop-up to Rs65,250 cr

A rash of last-minute disclosures might have taken black money declarations under the one-time compliance window to well around Rs64,275 crore, finance minister Arun Jaitley said citing a report filed by the Central Board of Direct Taxes (CBDT).

The Income Tax Declaration Scheme that ended on 30 September has managed to mop up Rs65,250 in what could be the most successful effort by the government in unearthing unaccounted income and wealth, finance minister Arun Jaitely said.

He also disclosed that 64,275 disclosures were made under the IDS scheme, adding that the money will go into the Consolidated fund of India and would be used for public welfare in social schemes.

Disclosures under the Income Declaration Schemes 2016 (IDS-16) peaked across various income tax circles on Friday, the last day of the extended scheme, according to official sources.

Offices of the Central Board of Direct Taxes in the North Block of the cabinet secretariat in Delhi seems to have worked all night to sum up amounts voluntarily disclosed unaccounted wealth or 'black money' made over the last four months.

CBDT sources observed an increased number of "physical and online" declarations under the Income Declaration Scheme (IDS) since morning even as the collections are expected to go on steady till midnight when the deadline will end.

Top income tax officials in Delhi, Mumbai and other metros were on the job well past midnight with Rani Singh Nair and revenue secretary Hasmukh Adhiya supervising the compiling and tallying operations of the final figures under the ambitious Income Declaration Scheme.

At Rs65,250 crore the amounts collected pan-India under IDS 2016 has far surpassed the score of the 1997 Voluntary Disclosure of Income Scheme (VDIS) launched by P Chidambaram.

The VDIS scheme had garnered Rs33,000 crore in declarations by over 4,00,000 declarants. In comparison, the IDS saw about 64,275 disclosures bringing in Rs65,250 crore.

CBDT sources said the final tally could touch Rs70,000 crore - twice as much as VDIS.

Since the scheme invites 45 per cent tax, the total income for the government from the scheme could be in the excess of Rs31,500 crore.